VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? 500 Startups created a helpful primer on key B2C metrics.

B2C 141

B2C Technical Review Startup Retention 141

Up and Running

AUGUST 21, 2014

In this webinar, we take time to discuss the different metrics that startups—and established businesses—should be tracking. In terms of pre-purchase, traffic and content metrics. So I’m going to keep going here, “Pre-purchase, the traffic and content metrics.”

Metrics 84

Metrics Startup Churn Rate Forecast 84

ConversionXL

FEBRUARY 3, 2022

How to create a growth hacking strategy using the pirate metrics model. Growth hacking in marketing incorporates the five stages of the customer lifecycle into the “ AARRR Framework ,” otherwise known as the “Pirate Metrics model.”. Acquisition. Image source. This stage answers the question: “How do our customers find us?”.

Retention 113

Retention Marketing Acquisition Channel 113

YoungUpstarts

APRIL 5, 2013

There are 3 major metrics that will determine the overall success of a SaaS vendor: Customer Acquisition Cost (CAC). Churn Rate. But many first time SaaS merchants overlook churn or don’t even know what churn is. We will explore the ins and outs of churn and tell you how to fight it. Communicate.

Churn Rate 133

Churn Rate Acquisition Retention Metrics 133

YoungUpstarts

AUGUST 24, 2017

More importantly, a subscription business model enables you to manage the cash flow, upgrade your business planning and optimize metrics such as churn rates, the lifetime value of a customer, expansion, and more. Through customer acquisition, you’ll work to grow the revenue and then, use that revenue to cover operational costs.

Churn Rate 149

Churn Rate eCommerce Business Model Bootstrapping 149

YoungUpstarts

AUGUST 2, 2016

Product Management Metrics. Despite huge efforts and seemingly good results, it’s important to use real metrics to arrive at a final verdict. Some of the most important are described below: Marketing metrics. This group of metrics covers numbers such as monthly unique visitors to the website and customer acquisition cost.

Management 100

Management Product Churn Rate Green 100

Version One Ventures

SEPTEMBER 19, 2012

Generally speaking, there are two ways (and only two ways) to scale a business to hit that $100 million threshold: Your business has a high Life Time Value (LTV) per user, giving you the freedom to spend a significant amount of money in customer acquisition. High LTV can usually be found in transactional or subscription businesses.

Churn Rate 168

Churn Rate Viral Acquisition Cofounder 168

ConversionXL

JUNE 26, 2019

With access to countless metrics, it’s easy to obsess over email opens or bounce rates. Although these metrics can be tracked, they don’t tell you much. Did your high bounce rate lead customers to churn ? Although a high bounce rate can absolutely contribute to those problems, we still don’t know the root cause.

Framework 121

Framework Churn Rate Metrics Revenue 121

Up and Running

NOVEMBER 6, 2020

There are common components in every business plan, but a SaaS (or subscription) business plan should have a special focus on customer acquisition (ie. Customer acquisition plan. Customer acquisition strategy. When we talk about customer acquisition, we’re talking about marketing and sales. Churn rate.

Business Plan 87

Business Plan Forecast Churn Rate Acquisition 87

ConversionXL

NOVEMBER 17, 2022

Prescriptive analytics The digital analytics metrics you need to know How to use analytics to improve marketing campaigns Define your mission, goals, and KPIs Set key performance indicators (KPIs) to measure marketing performance What to look for in a digital analytics product 9 tools for your digital analytics stack 1. Conversion rate.

Analytics 106

Analytics Metrics Channel Campaign 106

ReadWriteStart

OCTOBER 2, 2023

MRR is a crucial metric for measuring the growth of a SaaS business. Customer churn rate: Customer churn rate is the percentage of customers who cancel their monthly SaaS subscriptions. Customer acquisition cost (CAC): CAC is the money a company spends to acquire a new customer.

Design 105

Design Product Churn Rate Architecture 105

Up and Running

OCTOBER 7, 2019

You need to use your time and resources productively by focusing on the right metrics so you can use data to help you implement improvements that matter. The first step is to formulate a KPI strategy by selecting the right metrics to track. The metrics should help you identify areas for improvement.

Founder 71

Founder Retention Metrics Technical Review 71

VC Cafe

NOVEMBER 5, 2024

Product-market fit isn’t just about checking boxes or hitting metrics. ” — Sean Ellis, Growth Hackers At the heart of PMF, is a deep understanding of the users for your product. It’s about creating something that becomes an integral part of your users’ lives or businesses.

Product 158

Product Marketing Sales Cycle Churn Rate 158

Up and Running

SEPTEMBER 22, 2021

If not, now is the perfect time to get in on this effective and easy-to-implement user acquisition channel. Referral marketing is a user acquisition channel that allows you to leverage your existing user base for growth by incentivizing them with rewards. Like any other user acquisition channel, your efforts need to be cost-efficient.

Programming 141

Programming Churn Rate Design Campaign 141

ConversionXL

AUGUST 21, 2014

In other words, growth slows, becomes stagnate or worse, churn is so bad, you’re losing more customers than you are gaining every month. That’s why you need to be simultaneously feeding your growth engine , while monitoring churn and your other startup metrics. churn rate meant the company’s growth was unsustainable.

Retention 106

Retention Churn Rate Metrics Software Review 106

Up and Running

OCTOBER 3, 2014

These metrics are not the only ones worth tracking, but they will get you off to a good start! But, beyond the forecast, we needed to know what metrics we should be tracking. There are certainly more metrics that you can look at when you’re running a subscription business, but this a great starting point. Churn and Churn Rate.

Metrics 96

Metrics Churn Rate Forecast Revenue 96

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

But it’s surprising to me how many companies with recurring/subscription revenue don’t understand the interactions between the elements that make up customer acquisition cost (CAC), churn and lifetime value (LTV). Averages – The metrics described here are all averages calculated using data over a period of time.

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

ConversionXL

AUGUST 12, 2016

It’s a common acronym that gets thrown around in the SaaS world that’s basically a “businessy” way of saying “important metrics for tracking your business.” The Metrics That Matter. MRR is probably the most critical metric for any subscription business. LTV = ARPA * % Gross Margin / % MRR Churn Rate.

Software Review 48

Software Review Metrics Revenue Acquisition 48

Version One Ventures

SEPTEMBER 28, 2015

A few months ago, we wrote about the data we focus on to evaluate marketplaces and later shared a marketplace KPI dashboard that we created to guide founders on the important metrics they should track. There are lots of great blog posts and articles out there that talk about social platform metrics. Part I: High-Level Metrics.

Metrics 60

Metrics Churn Rate Due Diligence Social Network 60

Up and Running

JUNE 21, 2017

You can further “educate” your Google Analytics metrics by using UTM parameters on your links. You hardly ever need to look at user-specific data, but having that data available is fundamental to truly understand your metrics at scale. Read more about tracking metrics for a SaaS business here.

Marketing 98

Marketing Analytics Campaign Metrics 98

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

DECEMBER 2, 2020

Instead of measuring Awareness, Appeal, and Ask separately, we combined all marketing acquisition efforts under the Awareness stage, leaving Act to account for conversions in the form of sign-ups. Other metrics to monitor. In addition to the funnel stages described above, we also monitor some additional metrics.

Churn Rate 78

Churn Rate Analytics Retention SQL 78

Up and Running

NOVEMBER 12, 2018

Key metrics. Going smaller, use key metrics to ensure that your business is on track to reach your milestones. The five key metrics to judge your subscription model’s success are: Churn and churn rate. CAC (customer acquisition cost). MRR (monthly recurring revenue). LTV (lifetime value).

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

YoungUpstarts

SEPTEMBER 11, 2016

Knowing precise metrics about your business is prudent business management. According to an article published by Forbes, metrics that play a critical role in any startup management includes revenue run rate, average revenue per user, customer acquisition rate, churn rate, and operation efficiency.

Operations 100

Operations Management Churn Rate Startup 100

The Next Web

AUGUST 6, 2012

The best timing is when you are adding 1-3 customers each day and you will see the improvement in the churn rate. On the other hand, without knowing what is working for our metrics and KPI we will just be in the dark. So we brought a support person into the family and literally she did wonders.

Acquisition 121

Acquisition Churn Rate Customer Continuous Deployment 121

Up and Running

APRIL 27, 2012

These students are typically attracted to Internet and technology start-ups, given that these share favourable industry characteristics such as significant addressable markets, low barriers to entry, modest initial capital requirements and relatively low costs of customer acquisition. Most meaningful metrics. But they don’t.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 48

Retention Metrics Churn Rate Acquisition 48

David Teten

DECEMBER 3, 2019

Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking. The simplest way to track a company’s performance: have them give you access to their internal metrics dashboard. I used Ipreo heavily at one of my prior VC funds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ReadWriteStart

MAY 14, 2012

See, for example, their customer acquisition costs. But startups that track customer metrics have 400% more user growth. Most startups don’t even know which KPIs they should track or why they should track them. Second, they learn how their KPIs compare to other companies’ KPIs so they will know if they’re on the right track.

Churn Rate 133

Churn Rate Cofounder Startup Acquisition 133

Startup Lessons Learned

MARCH 21, 2013

If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.

Analytics 167

Analytics Lean Metrics Churn Rate 167

Seeing Both Sides

FEBRUARY 9, 2015

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. One of the themes I explore in the class is the tough reality that many metrics can actually get worse over time for a startup.

Metrics 20

Metrics Churn Rate Acquisition SEM 20

ReadWriteStart

AUGUST 26, 2022

The vast majority of their customer acquisition is word of mouth. When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs. Do you have other efficiency metrics that you look at when you evaluate businesses to check the quality of growth and the quality of the revenues? .

Partner 132

Partner Cofounder Retention Acquisition 132

ConversionXL

OCTOBER 11, 2022

The average ecommerce store devotes more than 80% of its marketing budget to customer acquisition. Customer retention is a metric that measures customer loyalty and how good your business is at keeping customers over time. According to Paul Farris’ book Marketing Metrics , a repeat customer has a 60% to 70% chance of converting.

Retention 111

Retention eCommerce Channel Community 111

ConversionXL

NOVEMBER 15, 2016

After all, the goal is to systematically improve the success of a business, whatever that means metric-wise. The differences, much like the differences of B2B optimization in general, mostly come down to differing business cycles, purchasing decisions, and success metrics. Reducing churn rate.

Conversion 48

Conversion Churn Rate Retention Metrics 48

Cracking the Code

OCTOBER 10, 2008

Effectively measuring and understanding your CAC and CLTV metrics are key to future success. Bessemer SaaS Law #1: Your key monthly business metrics are: CMRR (Committed Monthly Recurring Revenue), Churn, and Cash flow - “Bookings” is for suckers. Brian, Paglo www.paglo.com. Great list! Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Guy Nirpaz

OCTOBER 3, 2011

He suggests measuring two basic metrics: CLTV (Customer Life Time Value) and CAC (Customer Acquisition Cost). Those metrics should both be measured accurately, as based on the outcome, a company should decide how to treat its prospects/customers: Low CLTV would mean to use a less expensive resource to handle prospects/customers (i.e.

Customer 40

Customer Churn Rate Metrics Acquisition 40

Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%?

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20